Ortt unveils 'Revitalize Niagara Plan'

Submitted

Tue, Nov 24th 2015 04:15 pm

Senator calls for 75 percent of state's casino revenue to return to Falls, greater
accountability for funds and more private-sector investment

State Sen. Rob Ortt, R-C-I-North Tonawanda, unveiled
a two-pronged plan called "Revitalize Niagara," which would ensure the host
city and certain entities get their fair share of casino revenue, and would
allocate a portion of funds for economic development and job creation.

Ortt will introduce this plan as part of the 2015-16
budget talks, and negotiate amendments to the 99-h law, which outlines the
casino funding formula determining the amount of revenue to local government.
With the 99-h law set to expire at the end of 2016, coupled with the state's
estimated billion-dollar surplus following recent bank settlements, Ortt
sounded a note of urgency.

"The 'Revitalize Niagara Plan' will adjust the
formula to ensure that more of those casino dollars generated in Niagara Falls
will stay in Niagara Falls," Ortt said Tuesday. "The fiscally strained city
deserves a bigger piece of the pie to strengthen key stakeholders and regain
solid financial footing. Flipping the formula makes sense and should be
feasible. Considering the state's surplus, along with the dire need of jobs and
support in Niagara Falls, the time is now."

Under the current funding formula negotiated in 2006
between the State Legislature and local government, 25 percent of the net drop
of slot machine revenue is appropriated for Albany. Of that amount, only 25
percent of casino revenue is appropriated for the City of Niagara Falls and its
stakeholders. The state, therefore keeps 75 percent of funds. Ortt is proposing
to flip Albany's share with the city's. The city and specific entities would
then receive 75 percent of the state's appropriation, and the state would
receive 25 percent. The Seneca Nation would continue to receive 75 percent of
gambling interest.

In previous years, the city's stakeholders included
the Niagara Falls City School District, Niagara Falls Memorial Medical Center,
the Niagara Tourism and Convention Corp., the Niagara Frontier Transportation
Authority and city programs. These entities would still receive a share of
revenue under the "Revitalize Niagara Plan," and new stakeholders could be
added, such as the Niagara Falls Housing Authority.

Niagara Falls Memorial Medical Center President and
CEO Joe Ruffolo said, "Niagara Falls Memorial Medical Center is a recognized
health care innovator and provider and an economic engine that drives job
growth in Niagara Falls. By the end of 2016, we will have created 197 new jobs
on our medical campus and at our satellite offices across the Niagara Region.
Our annual economic contribution to the region totals more than $245 million.
The casino revenue we have received thus far has provided a key portion of the
$85 million we have invested in capital improvements and technology upgrades at
our facilities. A decline in those revenues could impede our continued growth.
Sen. Ortt's plan provides a solid strategy to ensure the continuation of
Memorial's economic investment and would have an overall positive impact on the
Niagara Region."

Niagara Falls Housing Authority Executive Director
Stephanie Cowart said, "Through services and public housing developments, the
Niagara Falls Housing Authority plays a vital role in the revitalization of
communities. We improve the lives of residents in need, housing more than 1,500
individuals and serving more than 10,000 people every year. Any financial
assistance from additional funds would help us out tremendously."

Without adjustments to the current funding formula,
stakeholders would receive less money due to increased gaming competition
across New York. Multiple state-sanctioned casinos, along with other
contributing economic factors, have caused Seneca Niagara Casino revenues to
decrease over the past four years, and could continue to dip over the next
several years.

Additionally, the "Revitalize Niagara Plan," similar
to the "Buffalo Billion" initiative, would set aside money specifically for
economic development and private-sector investment starting in the vicinity of
the Seneca Niagara Casino.

"We've seen how investments in Canalside from the 'Buffalo
Billion' has revitalized Buffalo's Inner Harbor," Ortt said. "We need to treat
the casino revenue like our 'Buffalo Billion.' We need to build up downtown
Niagara Falls and then carry that momentum throughout the entire city, block by
block, to attract more private-sector investment and tourists.

"Improvements to the immediate area surrounding the
casino will have a positive ripple effect on the economy with more tourism
dollars, gaming revenue, tax revenue and private development."

Faisal Merani, developer and president of Merani
Holdings LLC, said, "Downtown Niagara Falls needs more public-private
partnerships to continue to drive the economy forward. It is integral to keep
the growth and progress of Niagara Falls moving in the correct direction and in
the timeline necessary to take advantage of the increased number of tourists
the city is seeing. Having a plan that is geared toward that could draw even more
tourists, which is good not just for business, but for the entire community."

Ortt is calling on Gov. Andrew Cuomo, Assemblyman
John Ceretto and Niagara Falls Mayor Paul Dyster to consider his "Revitalize
Niagara Plan," and help him increase accountability for casino revenue and
ensure a portion of the money is used transparently, effectively and
efficiently.